MORE than 200 jobs are to go after the US army said that it would pull out of a Hampshire military base within five months, the Daily Echo can reveal.

The US Embassy has given the Ministry of Defence (MoD) notice that it will quit RAF Hythe by September 30.

The base used to service and repair military boats and other water equipment but could now be sold off to developers.

The move is a hammer blow to the ship repair industry on the Waterside.

It is thought that most employees had not been told about the decision before they left work yesterday afternoon.

The news comes as workers are halfway through refurbishing three US army tugboats, a job that would have kept them in work until next year. Other work has recently been farmed out to Kuwait and Japan.

One worker, who did not want to be named, said: "It's going to be a massive blow.

"Everyone is going to suffer because of that, the whole local economy, the Hythe club where the lads go for a drink, the butcher, the papershop.

"You never get total job security working for the MoD but this is a complete shock."

The US army employs 209 workers at the base. Half are on temporary contracts. There are also about a dozen MoD police and two US bosses.

Most staff live in the Hythe and Southampton area. Hythe Parish Council chairman Mike Short said: "This is devastating news. They are the biggest employer in the area.

"The base has a long history and apart from Esso is the only industrial employer left at Hythe.

"It will probably end up as housing. That's what happened to the Dreamland factory."

Hampshire county councillor Brian Dash, who represents Hythe and Dibden, said: "This is a complete shock. It would have been nice to have a bit of consultation and some sort of warning. I'm not sure it's a wise decision.

"It's a vital employer for Hythe. The community has always been very supportive of the base. Like any other community the prospect of jobs disappearing is horrendous."

New Forest East MP Dr Julian Lewis added: "This is a severe blow to 200 of my constituents who have provided a first-class, highly-skilled service to the US armed forces, servicing and refitting numerous watercraft and causeway equipment for many years.

"The work has been carried out competitively, economically and to the highest standards and it's a matter of regret that much of it has recently been transferred to Kuwait and Japan."

Dr Lewis said that he would call on ministers and the US Embassy to delay the closure until September 2008.

He accused the Americans of rushing the closure to coincide with the end of the US financial year.

Armed forces minister Adam Ingram confirmed that the US Embassy had given notice that it was pulling out.

He said: "It will be disappointing news for those associated with RAF Hythe and especially the 200 or so local employees directly hired by the US army and the small complement of MoD police who guard the facility."

He said that a thorough survey and consideration of all options would be undertaken to determine the future of the site.